Position Greeks
Definition · Level 5 · Greeks & volatility
Keep reading with Tradecraft
Without an account, you can read three definitions every 30 days. Tradecraft explains all 738 terms and strategies, with the lessons that teach them, flashcards that come back before you forget, quizzes and a payoff lab.
The net delta, gamma, theta and vega of a whole book: each leg’s Greek × 100 × contracts, signed and summed (stock adds delta only).
Example
Covered call: +350 Δ, −20 Γ, +$15/day Θ, −$50 vega.
Where Tradecraft teaches it
Level 5 · Greeks & volatility, in the lesson “Position Greeks & the risk report”: Add Greeks across legs, recognise each strategy’s signature and read a book in one line.
Related terms
- 25-delta optionThe OTM call or put whose delta is ±0.25 — the standard reference strike for quoting skew; very roughly a 1-in-4 chance of finishing in the money.
- Black–ScholesEuropean option-pricing model using spot, strike, time, rates, dividends and volatility; assumes lognormal prices, constant vol, no jumps and…
- Breakeven moveThe daily underlying move at which a delta-hedged option’s gamma P&L just covers its time decay: √(2 × |daily theta $| ÷ position gamma).
- Butterfly (vol quote)Smile-curvature quote: average of the 25Δ call and 25Δ put IVs minus ATM IV — how rich the wings are relative to the money.
- CharmSecond-order Greek: change in delta as time passes (“delta decay”).
- Delta bandA re-hedging rule: trade the underlying only when net delta drifts outside a set range, balancing transaction costs against hedging error.